Why NewMarket's Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chemical company NewMarket (NYSE: NEU  ) jumped 17% today, after the company reported earnings and a special dividend.

So what: Third quarter revenue fell slightly to $554 million, and net income dropped 9%, to $64.7 million, or $4.83 per share. Excluding special items, earnings were $4.91 per share, which came in ahead of estimates of $4.42.

Management also announced a special dividend of $25 per share, payable November 17. This is on top of the normal quarterly dividend of $0.75 per share, payable December 21.

Now what: An earnings beat is always a welcome sight, but we shouldn't lose sight of the fact that revenue and income are heading in the wrong direction. Analysts aren't expecting a quick recovery, and I'm not buying into the stock until operations improve. The stock is also up more than the special dividend, and I think there may be some pullback after the initial dividend-induced bounce.

Interested in more info on NewMarket? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2080088, ~/Articles/ArticleHandler.aspx, 10/20/2016 8:55:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 -4.58 -0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2016 4:02 PM
NEU $402.00 Down -5.69 -1.40%
NewMarket CAPS Rating: ***